Corning Buys Unit of Pirelli

CORNING, N.Y., Dec. 14 -- Corning Inc. bought 90 percent of Pirelli SpA's optical components and devices business, based in Milan, Italy, for $3.6 billion in cash. The remaining 10 percent of the company was acquired from Cisco Systems Inc. for about 5.5 million shares of Corning common stock.
The purchase is part of Corning's $10 billion effort to expand the optical equipment side of its fiber optics business, the company said. Corning will operate the optical components and devices business out of Milan, which will increase the company's market presence and labor force in Europe.